Global Daily Tax News, China Further Expands Tourist VAT Refund Scheme, (Jan 2, 2026)

The Chinese Government has confirmed that the Shanxi and Qinghai provinces have begun offering value-added tax refunds to tourists as of January 1, 2026.

Expansion to the provinces follows a commitment from the Chinese Government in April 2025 to expand the availability of refunds nationwide. The Government is also hoping to significantly boost the number of shops offering tax refunds, including by committing to process requests from businesses within five days.

The Government has also made refunds available for lower value purchases. Refunds are now offered for purchases worth at least CNY200 (USD27.5) from the same store on the same day, and the cash refund limit for claims was raised to CNY20,000.

Earlier, authorities in Jilin Province began offering refunds starting September 1, 2025, and Inner Mongolia regional authorities began offering refunds starting November 1, 2025.